Need to stop open banking

AK26

Dear All

On an HMO facebook page the following was posted:

"Are you aware of the Open Banking initiative starting in January 2018?

With your permission banks and other financial institutions will be able to access your bank accounts and banking history.
I know there will be a Big Brother feel to this but the positive aspect is that lenders will be able to access your bank statements and history without you having to provide reams of statements as you do now. Cross matching salary deposits etc may also mean you don’t have to provide pay slips or even accounts.

While to begin with it may be optional to allow lenders access I think it will become a compulsory part of the application process much like running a credit check is now."


Firstly, the Open Banking Initiative is a PRIVATELY OWNED COMPANY - check this out via the companies house website and search for Open Banking Limited. So, we now have a privately owned company that will be, at whim, able to directly access our bank accounts.

Secondly, why would anyone want their financial information FREELY accessible at whim by whosoever? We already have severe problems with fraud and now this new SCAM is opening a massive wide door into our private financial information.

I, for one, do NOT want anyone to have access to my bank accounts.

Who knows how to stop this?

eDicky

AK26 wrote: »

Who knows how to stop this?

Just don't opt in. If nobody does, hopefully it will die a natural death. Unless it's all a huge conspiracy to enslave us financially even further...

Biggles

The key phrase, which you quote, is 'with your permission'. Personally, I am perfectly happy to access each of my separate bank accounts as and when I need them and shall not be giving my permission.

msallen

I have two pieces of advice for you AK26.

1. Don't opt in.
2. Stop paying attention to hyperbolic and ignorant rants on ar5ebook.

Uxb

AK26 wrote: »

Who knows how to stop this?

Well you lot on here know what I am going to say....
So here we go

"Open banking" is an EU directive, part of the Payment Services Directive No 2 to give its full title.
So its is driven by the EU not the UK.
It is complusory - as we are still today (unfortunately) in the EU.
The EU tell us what to do and we have no option other than to comply.
There is going to be no debate in parliament, no parliamentary committee hearings, no discussions, no point in writing to your MP, no point in drawing up petitions and all the rest: it is going to happen - end of story.

As it is, I doubt the banks themselves are any happier about this that the OP is, are are most probably drawing up all sorts of security systems to cope with ensuring that the third parties given access are really who they seem to be.

As others have said - do not opt in.
Though I too suspect that eventually third party lenders will indeed demand access as part of lending agreements

18cc

As said above, you don't have to grant access and barring any hacking of the system etc noone will be able to see your accounts but you.

What is likely to happen, however, is eg you apply for a mortgage or loan and have to grant access temporarily to allow them to look at your income and spending.

However, in some ways this is probably no different from now having to supply 6 months salary slips (not sure if you also have to supply 6 months bank statements as well?)

As always, the devil is in the impementation

Jibeddy

AK26 wrote: »

While to begin with it may be optional to allow lenders access I think it will become a compulsory part of the application process much like running a credit check is now."

Whilst the majority of your post seems a bit, stressed. I do agree this may be the case.

I think people need to be a bit more open minded about it. Will I be opting it at the get go? Probably not. If it does seem worthwhile after a period of time then I'll look into it. But until anyone has seen exactly what it is, and not what papers are speculating, we shouldn't really judge it so harshly.

EachPenny

AK26 wrote: »

Who knows how to stop this?

The short answer is "We can't".

I agree with some of what you say, and won't be opting in myself. I also think that in due course the opt-in will become an opt-out - that is what history tells us will happen.

But my main concern is that we, the other customers, will again be expected to cover the cost of fraud involving the incautious who opt in and then give access to various people without checking those people are bona fide.

Keep_pedalling

Uxb wrote: »

Well you lot on here know what I am going to say....
So here we go

"Open banking" is an EU directive, part of the Payment Services Directive No 2 to give its full title.
So its is driven by the EU not the UK.
It is complusory - as we are still today (unfortunately) in the EU.
The EU tell us what to do and we have no option other than to comply.
There is going to be no debate in parliament, no parliamentary committee hearings, no discussions, no point in writing to your MP, no point in drawing up petitions and all the rest: it is going to happen - end of story.

As it is, I doubt the banks themselves are any happier about this that the OP is, are are most probably drawing up all sorts of security systems to cope with ensuring that the third parties given access are really who they seem to be.

As others have said - do not opt in.
Though I too suspect that eventually third party lenders will indeed demand access as part of lending agreements

As a member of the EU the UK played its full part in that directive, and the government is not only very keen to implement it but to add its own enhancements to implementation in the UK. To suggest we are being forced down this road against our own wishes is wrong. What ever changes and fowl ups Brexit brings the UK will be sticking to open banking.

https://www.ft.com/content/55f4503e-cb95-11e7-ab18-7a9fb7d6163e

worried_jim

Why would you not want access to the best value products with the least amount of hassle?

Of course the Luddites will be up in arms, but the cool kids will be all over this and there are more cool kids been born every day whilst the Luddites die out so of course it will take off and be a success.

How many of you said “i’ll never get satellite/cable, I’ll never have a smart phone, I’ll never have the internet, I’ll never go on holiday abroad etc etc” but soon enough most of us are doing it. By 2022 Nationwide estimate that 22% of its customers will be using these new platforms. It’s the future, leave your cave and embrace it!

eskbanker

EachPenny wrote: »

But my main concern is that we, the other customers, will again be expected to cover the cost of fraud involving the incautious who opt in and then give access to various people without checking those people are bona fide.

As I understand it, the only third parties who will be eligible for this scheme will be those who've gone through an FCA certification process, and so (if customer consent is obtained) the banks will only be opening up access to the relevant authorised and approved companies.